coal tax
Coal Tax Online Filing Service
Federal coal excise rules can feel technical but filing does not have to be. If your business removes coal from a mine or imports coal you may need to report the tax each quarter. eFileExcise720 is an IRS authorized e filing portal that helps you prepare and submit your coal excise tax return online in a secure way.
File faster with features built for busy teams:
- Free account setup with no software download
- Simple dashboard to enter tons and sales details
- Built in checks to reduce IRS rejects
- Secure data protection for your business records
- Friendly customer support from start to finish
Start your return now and finish later when you are ready.
What you can do on this page
This service is designed for businesses that need to report coal tax as part of the quarterly federal excise return. You will report the liability on form 720 and keep a copy of the accepted submission for your records. eFileExcise720 lets you enter the coal lines that apply to your activity, review totals before you transmit then get an electronic acknowledgment from the IRS.
If you have filed on paper before you may know how easy it is to miss a line or use the wrong code. Online filing reduces that risk with guided fields and math checks. You can view pricing before you submit so you can choose the option that fits your needs. For questions about e filing or account help our team can direct you to resources listed in about efile excise.
Who should complete coal excise tax filing
Coal excise tax filing generally applies when coal is produced in the United States and removed from the mine for sale or use. It can also apply to coal that is imported for consumption or resale. The reporting party is often the producer but the right filer depends on facts such as ownership terms, contract mining agreements and who first sells or uses the coal after removal.
Before you file confirm what happened during the quarter. Match tons removed to invoices or internal transfer records. Separate underground and surface production since the rates differ. Track the sales price used to apply the percentage limit. Keep notes on exports since export treatment can affect tax due.
If you work with partners confirm who will report the tax to avoid duplicate filings. When in doubt get advice from a qualified tax professional since the IRS can assess penalties for late or incorrect returns.
Coal tax rate and how to estimate what you owe
The federal coal tax rate is commonly calculated per ton with a cap tied to sales price. The IRS explains this in its guidance for the quarterly excise return. For reference many filers use the following rates:
| Coal type | Rate per ton | Cap based on sales price |
|---|---|---|
| Underground mined coal | $1.10 | 4.4% |
| Surface mined coal | $0.55 | 4.4% |
You calculate the tax two ways then use the smaller amount. First multiply taxable tons by the rate. Next multiply sales price by the cap percentage. The result you report is the lesser of those totals. This approach makes accurate sales price data important.
For the most current instructions and line references review the IRS guidance for the quarterly federal excise tax return.
What to prepare before you begin
Having clean records makes Coal tax efiling much easier. Gather your coal production and sales data for the quarter then collect the items below so you can complete the return without delays:
- Business legal name EIN and mailing address
- Responsible person name email and phone
- Taxable tons by coal type with supporting reports
- Gross sales price used for the cap calculation
- Any deposits already made for the quarter
- Any changes that require an amended return
Store supporting documents with your tax files so you can respond quickly if a notice arrives. Many filers also create an internal summary worksheet that ties tons to invoices and sales price.
How to file online with eFileExcise720
Once you sign in you select the coal tax sections you need then enter your quarterly figures. The dashboard helps you review totals and spot missing details before you transmit. After transmission you receive confirmation from the IRS so you have proof of filing. If you need to correct a prior quarter you can e file an amendment and keep the full audit trail in one place.
eFileExcise720 supports all quarterly excise categories including related items like the pcori fee, manufacturing tax and claims that may require the 8849 form. If you are not sure which form applies contact support and we will help you understand what to file next based on your situation.
Ready to start? Use our secure portal to file online at eFileExcise720 and complete your coal excise tax return with confidence today.
FAQs
Can I e file coal tax even if I also file other excise taxes? Yes. You can include multiple excise categories on the same quarterly return if they apply to your business.
What is the best way to confirm the coal tax rate I should use? Confirm whether the coal is underground or surface mined then check IRS instructions for the current rates and limits.
Do I need to file if I had no coal activity this quarter? Some businesses file a zero return to keep records consistent. Ask your tax advisor what is appropriate for your account history.
How quickly will I know the IRS accepted my return? E filing gives an electronic acknowledgment after the IRS receives and accepts the submission.
Can I amend a coal return that was already accepted? Yes. File an amendment for the affected quarter and keep your updated confirmation with your records.
Is my data secure when I file online? eFileExcise720 uses secure data handling and is IRS authorized which helps protect your business information.
